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(draw demand and supply diagram showing a shift to the left of the supply curve and a new equilibrium)explanation:indirect tax increases the cost to the producer this means they can no longer sell t...
A maximum price is a price set below the market equilibrium by the government which firms are not allowed to exceed. This can result in creating disequilibrium in the market resulting in ...
Consumption - a reduction in interest rates means that the cost of borrowing money for consumers is lower. This means that consumers demand more money in order to consume. Large purchases become relativel...
An indirect tax (when a government places a tax on goods or services) on cigarettes is an example of the correction of a negative externality of consumption (a market fai...
In economics, elasticities are an indicator of the responsiveness of demand after a change in price or income. Income elasticity of demand is the relative change i...
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